ENTSOG Winter Supply Outlook Report Shows Low Storage Levels in Europe Amid High Gas Price
The ENTSOG’s Winter Supply Outlook reports reveal low storage levels amid the skyrocketing gas prices as winter gets closer. In a press release published on Tuesday, October 12, 2021, the organization said decisions made by key market participants impact the storage levels.
Based on the report, European gas infrastructure provides ‘sufficient flexibility to the market throughout the winter, even in the case of a heightened demand during cold winter. Additionally, the report revealed that exceptionally low storage levels compounded with reduced indigenous gas production would necessitate 5-10% imports more than the region’s maximum imports in the past few years.
Further, the report states that market decisions on stored gas utilization could influence the withdrawal capacities of the gas storage at the end of the winter season. And in case of supply disruption during peak demand situations at the end of the winter, too low storage levels could significantly impact gas system flexibility.
“The analysis undertaken in the report shows the important role of the gas market players and sufficient gas imports in high demand situations and in particular in a situation with low storage levels, as can be seen exceptionally this year. Importantly, the report confirms the robustness and flexibility of the European gas infrastructure,” the ENTSOG General Director, Jan Ingwersen’s comment read.
ENTSOG assessed the overall capability of the European natural gas systems to put up with normal and cold winter conditions as well as high-demand situations such as a two-week cold spell or a peak day. The report is also complemented by assessing high-demand situations like those caused by disruption of the main supply routes as required by the Security of Supply EU Regulation (EU) 2017/1938.